Distribution Company Business Plan Template

Distribution Company Business Plan Template

If you want to start a distribution business tor expand your current distribution business, you need a business plan.

The following Distribution Company business plan template gives you the key elements to include in a winning Distribution business plan.

You can download our distribution company business plan template (including a full, customizable financial model) to your computer here.

 

Sample Distribution Company Business Plan Template

Below is a distribution company business plan example with each of the key sections to help you write a distribution company business plan for your own company.

I. Executive Summary

Business Overview

[Company Name] is a new beverage distribution company that operates in [location]. Our company will distribute various beverage products from local manufacturers to restaurants, bars, and retailers. Some of the products we distribute include wine, beer, soda, and bottled water. Our region has a thriving beverage industry, so our company will be a huge asset to small and local beverage manufacturers looking to distribute their products in retail stores.

Products Served

[Company Name] will distribute various beverages from manufacturers to local businesses and retailers. Some of the products we will distribute include:

• Beer
• Wine
• Soda
• Fruit Juices
• Bottled Water
• Sparkling Water

We will purchase large quantities of these products directly from the manufacturers for a negotiated cost and then resell them to retailers for a moderate profit.

Customer Focus

[Company Name] will primarily service beverage manufacturers within 20 miles of [location]. The area is home to hundreds of locally owned breweries, wineries, and beverage manufacturers looking to expand their customer base. We will deliver these businesses’ beverage products to grocery stores, bars, restaurants, and other retail establishments.

Management Team

[Company Name] is headed by [Founder’s Name], who graduated from [University] with a degree in Business Administration. Prior to starting [Company Name], [Founder’s Name] worked as an operations manager at a distribution company for [X] years. During his career, he was able to learn all aspects of the industry, including the operations (e.g., running day-to-day operations) and management (e.g., staffing, marketing, etc.) sides. His experience will be invaluable to the business.

Success Factors

[Company Name] is uniquely qualified to succeed for the following reasons:

• [Company Name] will focus primarily on the local region (about a 20-mile radius from [location]). Many small beverage manufacturers are overlooked by larger distribution companies and don’t always have the money or resources to distribute their products themselves.
• The [location] region has a robust beverage industry in need of niche distribution services.
• The management team has a track record of success in the distribution industry.
• [Founder’s Name] has established relationships with local business owners and leaders that will help us build an initial client base.

Financial Highlights

[Company Name] is currently seeking $2,000,000 to launch. Specifically, these funds will be used as follows:

• Warehouse design/build: $1,000,000
• Vehicle and machinery purchase and maintenance: $500,000
• Equipment and supplies: $250,000
• Working capital: $250,000 to pay for marketing, salaries, and lease costs until [Company Name] reaches break-even

Top line projections over the next five years are as follows:

 

II. Company Overview

Who is [Company Name]?

[Company Name] is a new beverage distribution company that operates in [location]. Our company will distribute various beverage products from local manufacturers to restaurants, bars, and retailers. Some of the products we distribute include wine, beer, soda, and bottled water. Our region has a thriving beverage industry, so our company will be a huge asset to small and local beverage manufacturers looking to distribute their products in retail stores.

[Company Name] is headed by [Founder’s Name], who graduated from [University] with a degree in Business Administration. Prior to starting [Company Name], [Founder’s Name] worked as an operations manager at a distribution company for [X] years. While his former employer distributed products for a variety of industries, [Founder’s Name] has had a passion to create a company that specifically partners with local beverage manufacturers. However, during his career, he was able to learn all aspects of the industry that will prove invaluable to our niche business.

[Company Name]’s History

[Founder’s Name] incorporated [Company Name] as an S-corporation on [date of incorporation]. The company is currently being run from [Founder’s Name]’s home but will move to the warehouse once it is built and furnished.

Upon incorporation, [Company Name] was able to achieve the following milestones:

• Found a location to build a warehouse and hired a construction company
• Developed the company’s name, logo, and website located at [website]
• Determined equipment and fixture requirements
• Identified required vehicles and machinery
• Began recruiting key employees

[Company Name]’s Products/Services

[Company Name] will distribute various beverages from manufacturers to local businesses and retailers. Some of the products we will distribute include:

• Beer
• Wine
• Soda
• Fruit Juices
• Bottled Water
• Sparkling Water

We will purchase large quantities of these products directly from the manufacturers for a negotiated cost and then resell them to retailers for a moderate profit.

 

III. Industry Analysis

As long as companies keep making products, there will be a demand for distribution services. Not every company can afford its own distributing services, meaning that they look to distribution companies to help them out.

The beverage industries are great markets to work with as they are always expanding and in great demand. People all around the world enjoy drinking beer, wine, and other drinks, especially from local brands and manufacturers.

And this demand is not decreasing anytime soon. According to Grand View Research, the beer industry will grow at a rate of 7% for the next ten years, the wine industry will grow at a rate of 6.4% annually , and the soft drink industry will grow at a rate of 4.7% . All three industries are thriving with no signs of slowing down. They all need partners and distributors to reach their customers, meaning that [Company Name]’s services are in higher demand than ever before. Therefore, this is an incredible time to start our distribution company and we can expect great success and growth in the near future.

 

IV. Customer Analysis

Demographic Profile of Target Market

[Company Name] will serve the local beverage industries located within a 20-mile radius of [location]. The area is home to hundreds of breweries, wineries, and other beverage manufacturing businesses, as well as thousands of grocery stores, restaurants, and other establishments that are interested in selling these beverage products.

Customer Segmentation

[Company Name] will primarily target the following three customer segments:

• Breweries: [Location] is known for its amazing selection of local breweries. People from all over the state, as well as nearby states, come to [location] to taste a selection of local beer options. Therefore, breweries need their products distributed and sold to local retailers and restaurants to supply this demand.
• Wineries: Wine is also a popular commodity for the region. Therefore, wineries also need distribution services to stock their products around [location].
• Other beverage manufacturers: Hundreds of beverage manufacturers in [location] produce a wide variety of sodas, sparkling waters, and other beverages that offer unique flavors and ingredients. Many of these manufacturers have a loyal customer base that wants access to their favorite drinks at their local grocery stores and restaurants. Therefore, these businesses will rely on a dependable distribution company to help them out.

 

V. Competitive Analysis

Direct & Indirect Competitors

The following companies offer extensive beverage distribution services locally and therefore provide either direct or indirect competition to our business:

Williams County Beverage Distribution
Williams County Beverage Distribution has been a major beverage distributor for the county since 1975. It is a county-wide distribution service that distributes non-alcoholic beverages, such as sodas, fruit juices, and sparkling waters. Because of Williams County Beverage Distribution, many restaurants and bars are able to serve local non-alcoholic drinks for local residents to enjoy.

Since Williams County Beverage Distribution only distributes non-alcoholic drinks, they will only be a competitor for this sector of our business. They also only deliver to restaurants and bars, so many of their clients may be eager to work with a distribution company that delivers to grocery stores as well.

Local Hops Distribution
Local Hops Distribution is specifically a beer distribution company that has operated since 2012. It distributes the most famous local beers to restaurants, bars, and local grocery stores. Because of Local Hops Distribution’s services, many breweries have exploded in popularity, which in turn has created a higher demand for Local Hops’ distribution services.

Though we expect Local Hops Distribution to continue to thrive, it will only compete with us in the beer sector. However, in recent years Local Hops has been much pickier about which new manufacturers they partner with, providing us with many potential new clients who need distribution services.

Bridge City Wine
Bridge City Wine is a wine distributor that operates solely in [location]. They distribute wines made within a 20-mile radius to stores and bars located specifically in [location]’s city limits. They distribute all kinds of wine across a dozen local brands.

Though Bridge City Wine will continue to thrive, we will only see competition with them in the wine sector. They also only work with about a dozen wine manufacturers, meaning that many other brands will be eager to utilize our services.

Competitive Advantage

[Company Name] enjoys several advantages over its competitors. These advantages include the following:

• Client-oriented service: [Company Name] will have 24/7 customer service and a strong team to fully cater to our clients’ needs.
• Management: [Founder’s Name] has been extremely successful working in the industry and will be able to use his previous experience to provide the best sales and customer service experience. His unique qualifications will serve customers in a much more sophisticated manner than [Company Name]’s competitors.
• Relationships: [Founder’s Name] knows many of the local leaders, business managers, and other influencers within [location]. With his [X] years of experience and good relationships with business leaders in the area, he will be able to develop an initial client base.

 

VI. Marketing Plan

You can download our distribution company business plan template (including a full, customizable financial model) to your computer here.

The [Company Name] Brand

The [Company Name] brand will focus on the Company’s unique value proposition:

• Client-focused distribution services that treat each client individually and get the job done right the first time
• Service built on long-term relationships
• Thorough knowledge of our clients and their varying needs

Promotions Strategy

[Company Name] expects its target market to be beverage manufacturers operating within 20 miles of [location]. [The Company’s] promotions strategy to reach these businesses includes:

Website/SEO
[Company Name] will develop a professional website that showcases pictures of the warehouse and the products we distribute. It will also invest in SEO so that the company’s website will appear at the top of search engine results.

Social Media
[Founder’s Name] will create the company’s social media accounts and invest in ads on all social media platforms. The company will use targeted marketing to appeal to our target demographics.

Publications
[Company Name] will announce its launch several weeks in advance through publicity pieces in multiple newspapers and relevant publications. Regular advertisements will run to maintain exposure to relevant markets.

Commuter Advertising
We will drive attention toward [Company Name] by renting billboard ad spaces along routes or highways that hold heavy traffic. Advertising on heavily traveled commute routes is an opportunity to alert large numbers of businesses of our opening.

Client Referral Programs
[Company Name] will create an aggressive client referral program that gives discounts to existing clients for every successful referral.

Direct Mail
[Company Name] will blanket businesses with direct mail pieces. These pieces will provide general information on [Company Name] as well as enticements for businesses to use our services.

Pricing Strategy

[Company Name] will aim to purchase beverage products wholesale at a price that works for both us and the manufacturer. When selling to retailers and other businesses, [Company Name]’s pricing will be moderate, so customers feel they receive great value when purchasing their favorite local beverages. The pricing will be affordable enough so anyone can buy these great local drinks but high enough so that we make a solid profit.

 

VII. Operations Plan

Functional Roles

In order to execute [Company Name]’s business model, the company needs to perform many functions, including the following:

Administrative Functions

• Bookkeeping
• Marketing
• Website and social media maintenance
• Provide customer service
• Hiring and training staff
• General maintenance functions

Distribution Functions

• Transport goods from manufacturers and the warehouse to retailers
• Load and unload trucks with beverage products
• Stock and organize products in warehouse
• Count inventory for accuracy
• Keep warehouse clean and organized
• Inspect products often to ensure quality
• Maintain temperatures in refrigerated and climate-controlled facilities
• Provide excellent customer service

Milestones

The following are a series of steps that lead to our vision of long-term success. [Company Name] expects to achieve the following milestones in the following [xyz] months:

 

VIII. Management Team

Management Team Members

[Company Name] is headed by [Founder’s Name], who graduated from [University] with a degree in Business Administration. Prior to starting [Company Name], [Founder’s Name] worked as an operations manager at a distribution company for [X] years. During his career, he was able to learn all aspects of the industry, including the operations (e.g., running day-to-day operations) and management (e.g., staffing, marketing, etc.) sides. His experience will be invaluable to the business.

Hiring Plan

[Founder’s Name] will serve as the Chief Executive Officer of the company. In order to launch, the company needs to hire the following personnel:

• Drivers (4 to start)
• Warehouse Manager
• Administrative Assistants (1 to start)
• Warehouse Associates (4 to start)
• Sales Representatives (2 to start)

 

IX. Financial Plan

Revenue and Cost Drivers

[Company Name]’s revenues will come primarily from reselling beers, wines, and other beverages to local establishments for a higher price than we paid the manufacturers.

The major costs will consist of product purchases, salaries, vehicle and machinery maintenance costs, and ongoing marketing expenditures.

Capital Requirements and Use of Funds

[Company Name] is currently seeking $2,000,000 to launch. Specifically, these funds will be used as follows:

• Warehouse design/build: $1,000,000
• Vehicle and machinery purchase/maintenance: $500,000
• Equipment and supplies: $250,000
• Working capital: $250,000 to pay for marketing, salaries, and lease costs until [Company Name] reaches break-even

Key Assumptions

The following table reflects the key revenue and cost assumptions made in the financial model:

 
5 Year Annual Income Statement

 
5 Year Annual Balance Sheet

 
5 Year Annual Cash Flow Statement